Finance
A 'balloon mortgage' in New Jersey is characterized by:
AMonthly payments that increase (balloon) over time
BA fixed term with regular payments, but a large lump-sum payment of the remaining balance due at the end of the term✓ Correct
CA mortgage that floats with inflation
DA shared equity mortgage with government subsidy
Explanation
A balloon mortgage has regular monthly payments (often based on a 30-year amortization) but the full remaining balance becomes due at the end of a shorter term (typically 5, 7, or 10 years). The borrower must refinance, sell, or pay the balloon when due.
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